New to Memphis

[Shay Sahray]

Hello everyone,

I'm considering to start investing in Memphis

It looks like there are a plenty of investment opportunities there of 20-40K rental properties with high ROI/Cap rate

What should I take in consideration before starting investing?

I know the crime rate is high (maybe very high) and those are not what can be considered a "good neighborhoods" but how is that should impact my decision?   

Any comment/ideas will be highly appreciated!

Thanks

Shay

[James Martin]

Welcome to BiggerPockets Shay! Their will be many that say you should stay away from these areas at all cost for many good reasons.  Honestly, I agree with them on many levels but my personal financial situation couldn't afford those areas at that time. It took us years of researching, studying, taking losses, learning tactics and building relationships with neighbors & police in certain areas. With all that in mind those areas continue to be impoverished, but we have been able to do quite well on short term bases (15 months to 3 years). If you decide to invest in these areas I would suggest that you do the same renovation that would be done in a good area, but with a lesser expensive products ( instead of hardwood we use strip vinyl with wood pattern). We always install security doors with alarm systems on our homes. We make sure that the backyard is fenced and bushes cut back away from the home. This really helped us get the best tenant in the area on a 15 month lease. It would be in your best interest to choose a company that wants to work in those areas, has the experience and man power to do so. Take in consideration that your property will be lived in hard and I would recommend at lease one inspection every six months. I'm sure there's a ton more to speak about, but I would like to hear what others have to say.